”In accordance with the division of powers between the federal, provincial, and local levels as per the Constitution, division of labor, coordination, and interconnections must be institutionally strengthened for implementation support,”
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The Auditor General's annual report has made recommendations to public bodies to ensure effective, economical and sustainable use of public resources by promoting accountability, transparency and integrity. Based on the audit, it has been suggested to address weaknesses, ambiguities and implementation challenges in legal, policy, structural and operational systems.
The Auditor General's The recommendations made in the report include the formulation and implementation of laws under 'Government Management'. The suggestion states, "To make the federal civil service, education service, etc. directly related to the implementation of federalism effective, the relevant basic laws should be amended in a timely manner." "Legal clarity should be maintained by amending the conflicting and unclear provisions in the existing laws."
Similarly, it is suggested to make timely improvements in the procurement law for clarity and ease in the procurement of goods or services including information technology, medicines and pharmaceutical materials, land acquisition and acquisition, agricultural materials and fertilizer supply, reconstruction and restoration of archaeological heritage, etc. ‘When making laws under delegated authority, arrangements should be made to clarify its jurisdiction and specify the source and limits of the law,’ the Accountant General said. ‘It should be clarified whether government funds established through various acts and formation orders fall within the scope of the consolidated fund specified by the constitution or not, and arrangements should be made to ensure that the expenditure from such funds is operated in accordance with Articles 117 and 205 of the constitution.’
The Accountant General has also suggested regarding the implementation and coordination of federalism. ‘In accordance with the constitution, the division of labor, coordination and interrelationship should be institutionally strengthened for implementation in accordance with the distribution of powers between the federal, provincial and local levels,’ the report states.
The Accountant General has suggested making the role of the councils formed to resolve political and other disputes arising between federal units and to manage coordination and interrelationship more effective. ‘Necessary reform measures should be adopted to ensure stability in resource distribution by making the intergovernmental financial transfer system predictable, transparent and result-oriented,’ the report points out. ‘In cases where there is multiple investments in a single project, a clear partnership model should be developed to manage resource mobilization at the level.’
The Accountant General has asked the provincial government to resolve the problem in local level employee management as the provincial government has not registered the posts after the local level submitted its organization and management survey for registration.
Under the title of ‘sustainable and self-reliant economy’, it has also suggested adopting necessary policy and structural reforms to achieve sustainable economic growth through internal production, job creation and skilled manpower development, and taking precautionary measures to minimize the pressure on the economic and financial sector, keeping in mind the potential impact of natural disasters and external risks.’
‘To increase foreign exchange earnings from the tourism sector, infrastructure development, service quality improvement, destination identification and diversification, and private investment should be encouraged,’ the suggestion says. The report points out that for economic growth in credit, investment, and capital formation, investment should be increased by expanding credit flow through banks and financial institutions and increasing investment in the productive sector.
‘To encourage credit flowing to the productive sector, a policy arrangement should be made with a clear basis for determining the interest rate of credit flowing to the sector through banks and financial institutions and credit flowing for consumption,’ the report says. ‘To attract private and foreign investment, a policy stability, predictability, and investment-friendly environment should be ensured.’
The Accountant General suggests making policy arrangements to balance public and private consumption and savings to encourage capital formation. Similarly, the Accountant General also suggests creating an environment for industry, trade, and investment.
It has been suggested to make the overall investment environment simple, transparent and predictable by maintaining coherence between industry, trade, tax and financial policies, and to increase production and competitive capacity through export promotion, development of special economic zones, innovation and technology-friendly entrepreneurship. ‘Investor confidence should be enhanced by simplifying administrative processes and ensuring timely service delivery,’ the Accountant General suggests.
